Location Based Advertising Prohibited

Apple has just posted on their iPhone Developer News feed, a note stating that applications which makes use of the Location service for advertisement purposes, will be banned from the AppStore. Furthermore, Apple states that the use of the Location feature should be used for beneficial purposes whichever that means.

The Core Location framework allows you to build applications which know where your users are and can deliver information based on their location, such as local weather, nearby restaurants, ATMs, and other location-based information.
If you build your application with features based on a user’s location, make sure these features provide beneficial information. If your app uses location-based information primarily to enable mobile advertisers to deliver targeted ads based on a user’s location, your app will be returned to you by the App Store Review Team for modification before it can be posted to the App Store. – Apple

This recent announcement by Apple has risen several suspicions, that Apple is tending to reserve the capability of Advertisement to themselves.

How come you ask?

According to Macnn.com:

Many analysts believe Apple is preparing to launch a mobile advertising network that will serve ads through free apps on the iPhone, iPod touch and iPad. The company recently acquired Quattro Wireless, a mobile advertising specialist, after reportedly failing to sign a deal to purchase AdMob. The latter company was later picked up by Google.

What is it that Apple is planning to roll out from under their sleeves this time? At this time, their purpose is still vague.